“Whoever pays the zakat on his wealth will have its evil removed from him” Ibn Khuzaimah and at-Tabaraani.
Zakat can be tricky to navigate, especially if you’re new to it.
But it’s essential that we have an understanding of it. It’s a beautiful pillar of Islam, and it has the power to transform our world for the better, with immense benefits - not just for the individual, but also for the society at large.
Our Thirst Relief Appeal is a beautiful way to pay your Zakat and recieve blessings with every pump for years to come.
Missing out on paying your Zakat, without a valid reason, is deeply spiritually damaging.
We don’t want anyone to be in the dark about Zakat. So, we’ve written this article to give you the Zakat facts you need to understand your donation, and how it can change the world.
What is Zakat?
The Prophet (saw) famously said, as narrated in Bukhari, ‘bunyal Islam ala khamsin’ - Islam is built upon five things. These five pillars uphold the faith, and one of them is Zakat.
It’s an annual payment made by Muslims to support the underprivileged in society.
Your Zakat is 2.5% of certain parts of your wealth is given by Muslims who fit into the below categories:
4) You possess above the Nisab threshold (more to come on this!)
Zakat is a key part of our faith. In Arabic, it means to grow, to increase and to purify – the idea is that by giving Zakat, you don’t decrease in wealth, but in fact, you will increase in wealth and your money is purified.
Indeed, the Prophet Muhammad (saw) said: “Charity never decreases wealth.” [Muslim]
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What is Nisab?
Your Nisab is the threshold amount that makes you eligible to pay Zakat. The Prophet (saw) set the Nisab level at 87.48 grams of gold and 612.36 grams of silver, according to the dominant school of thought.
Of course, in today’s world, gold and silver isn’t our currency, so the Nisab level will be the equivalent rate. You can calculate your Zakat and see if you are above the Nisab, using our FREE Zakat Calculator.
During your Zakat payment, you may encounter the word ‘hawl’ which refers to the lunar year. Once your wealth has remained above the Nisab threshold for a full Islamic lunar year, you must pay your Zakat.
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When do you pay Zakat?
You pay Zakat when your money has passed the Nisab threshold, over a full Islamic lunar year.
If your held assets fall below the threshold, you no longer need to pay.
Your Zakat is calculated based on your personal wealth and is often paid by Muslims in Ramadan, the month of greatest reward.
However, your Zakat can be paid any time of the year, with some people preferring to pay at the start of the Islamic New Year, so it’s easy to remember.
Give the gift of sight with our zakat applicable campaign: Open Your Eyes.
How much Zakat do I pay?
Calculating your Zakat isn’t as difficult as you think.
But to make things easier, we have devised this Zakat calculator to help you work out how much you owe.
Zakat also doesn’t have to be paid all at once; it can be spread out throughout the year via your debit card - for example, you could Sponsor an Orphan or Build a Well throughout the year with your Zakat.
Donate to Feed our World and provide sustainence during this holy month or all year round.
What’s included in my Zakat calculations?
Zakat is only due on your held assets and personal money. What is considered your basic necessities, like your home or car, would not be included, but your second home and your second car would be liable for Zakat.
Your assets would be a total sum of the following list:
Your cash in savings, either in the bank or at home
Funds raised for special circumstances, i.e. a wedding, hajj, property deposit
The total value of your owned gold and silver
The total value of held shares at market value
The total value of the stock you hold if you own or run a business
The value of rental income from owned property
Any money in debt to you that you expect to see returned
If you own multiple properties that are rented out, you would need to calculate your total rental income.
The below are not considered Zakatable:
· Your personal items, including clothing and household appliances
· Any money owed to others, including debt, mortgage or loans
· Your rent or mortgage payment in the month you owe Zakat
· Any bills that are outstanding in the month you are due to pay Zakat
For business owners:
· Your business rates, salaries, bills or rent are not Zakatable
· Neither are any short term business loans or business overdrafts
Give the gift of Deen with your Zakat in Ramadan 2019 with our Hifz Orphan project.
Key Facts for Zakat paid on Gold or Silver
· Gold or Silver jewellery kept for wealth
· Jewellery which is made of gold and silver that is held as a treasure and an accumulation of wealth.
· Personal use ornaments
· Items containing gold or silver purchased for personal use as ornaments are Zakatable. This includes ornaments used for house decoration and utensils (such as silver spoons etc).
· Gold or Silver designated for personal use
· Among scholars, some differ regarding gold and silver jewellery that is kept for personal use being Zakatable or not. The safer option is to pay Zakat on them as it is a doubtful matter, neither clearly made halal or haram.
· However, other precious metals and stones are not zakatable.
Other Zakat Facts You Need to Know;
Facts on who receives Zakat
There are 8 categories of recipients for Zakat, as outlined by the Quran:
“Indeed, the prescribed charitable offerings are only to be given to the
 poor and
 the needy, and
 to those who work on administering it, and
 to those whose hearts are to be reconciled, and
 to free those in bondage, and
 to the debt-ridden, and
 for the cause of God, and
 to the wayfarer.
This is an obligation from God. And God is all-knowing, all-wise.” (Qur’an, 9:60)
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Don’t miss out on our 100% Zakat policy!
At Penny Appeal we are proud of our 100% Zakat policy!
That means that every penny of your Zakat is given to the cause.
Your Zakat helps those most in need – whether that be vulnerable babies and mothers, orphans, building water wells for those who lack clean water or even adopting a gran so that elderly people get the care they need!
Zakat has a direct benefit for the payer, beneficiary and society. When Zakat is distributed correctly on an individual level, as well as institutionally, it paves the way for our religion to flourish, as every tier of society is catered for, thus strengthening the power that faith can have in the world.
If you have any more questions about your Zakat, we’re here to help. Our Zakat doctor is a 1-1 bespoke service with trained Imams where you can discuss how to pay or learn more about Zakat charity. Just call: 03000 11 11 11.
Our Alternatively take a look at our FAQs here.
WEDNESDAY 8 MAY 2019